BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                  AB 297
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          CONCURRENCE IN SENATE AMENDMENTS
          AB 297 (Chesbro)
          As Amended July 2, 2013
          Majority vote
           
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          |ASSEMBLY:  |75-0 |(May 2, 2013)   |SENATE: |37-0 |(September 3,  |
          |           |     |                |        |     |2013)          |
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           Original Committee Reference:    HEALTH  

           SUMMARY  :  Authorizes a primary care clinic to submit  
          verification of certification from the Accreditation Association  
          for Ambulatory Health Care (AAAHC) or any other accrediting  
          organization recognized by the Department of Public Health (DPH)  
          to the Licensing and Certification (L&C) Division of the DPH for  
          purposes of data collection and extraction for licensing and  
          certification fee calculations.

           The Senate amendments  additionally authorize a primary care  
          clinic to submit verification of certification from any other  
          accrediting organization recognized by DPH.

           EXISTING LAW  authorizes primary care clinics to submit  
          verification of Joint Commission on Accreditation of Healthcare  
          Organization (JCAHO) certification to the L&C Division within  
          DPH for entry into the electronic Licensing Management System  
          for purposes of data collection and extraction for licensing and  
          certification fee calculations.

           FISCAL EFFECT  :  None

           COMMENTS  :  The California Primary Care Association (CPCA) is the  
          sponsor of this bill.  According to the author and CPCA, this is  
          a technical cleanup bill to reflect current practice.  Adopting  
          verification from these entities in lieu of DPH site inspections  
          expedites the process and reduces state costs that otherwise  
          would be required for the site inspections and data collection.   
          The fees are collected annually, and re-inspection is required  
          every three years.

          Primary care clinics are required to be licensed through the  
          authority of the DPH.  Community clinics and free clinics are  
          two types of primary care clinics.  Examples of community  








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          clinics are federally qualified health centers (FQHCs) and rural  
          health centers.  DPH utilizes standards defined in state and  
          federal law and regulations to evaluate health facility  
          compliance.  The licensing and certification process is intended  
          to both ensure public safety at community clinics, and to  
          prevent fraud and abuse of the Medi-Cal and Medicare billing  
          systems.  There are numerous regulations that clinics must meet  
          regarding physical plant and facility building standards,  
          pharmaceutical storage and administration, data reporting, basic  
          services, and staffing in order to obtain and maintain a primary  
          care clinic license.  The clinic must have the following  
          documents:  clinic operational policies and procedures, transfer  
          agreements, service agreements, written administrative policies,  
          employee records, employee health examinations and health  
          records, emergency management plans, and a quality assurance  
          evaluation policy.  The California Health and Safety Code, the  
          California Code of Regulations, and other state and federal  
          regulations contain specific requirements for primary care  
          clinics.

          Currently DPH licenses FQHCs that comply with state safety  
          standards.  DPH conducts site inspections and compiles  
          information to verify and certify compliance with those safety  
          standards, and also to determine the appropriate calculation of  
          the DPH's licensing and certification fees.  Existing law  
          provides that in lieu of a DPH site inspection, a FQHC can  
          submit certification from the JCAHO verifying that the FQHC was  
          inspected by JCAHO and is in compliance with the state's safety  
          standards.  Since the statute was enacted, DPH accepts  
          verification of compliance from an additional accreditation  
          entity, the AAAHC.  Accrediting entities are independent  
          non-profit organizations.  Accreditation is not required for an  
          FQHC to operate, but it does certify that the FQHC has met state  
          standards to assure quality services and facilities.  FQHCs  
          contract with an accrediting entity for inspection and  
          verification of compliance with state standards.


           Analysis Prepared by  :    Rosielyn Pulmano / HEALTH / (916)  
          319-2097 


          FN: 0001457  
          









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